Went all the way, they filed every possible paper they could file, but they did not succeed. Based on your description, I don't think that in your case it was actually filed yet (correct me if I'm wrong). In some cases they will just try to scary you, but if you don't break - they won't file. If they do - well, find a good lawyer (somebody already mentioned Grellas here).
Right now the first thing that you should do is go and talk to SEVERAL lawyers. Find the ones that have free initial consultation, spend 30 minutes with them, they will tell you what your options are. If there's a possibility for a counter suit - you should probably do that.
Also, read your employment agreement several times. In a lot of cases there's a statement that the defeated party will pay attorney's fees. In a lot of cases there is a statement that the company will pay all the fees except first $100-$500. And in a lot of cases the case must be filed with the arbitration, which is much cheaper and if you don't have money to pay for your lawyer - you might have a better chance there.
Talking to several lawyers is indeed important; personally I had once a crappy lawyer telling me my case was hopeless, when it couldn't have been farther from the truth; it's best to have several opinions to understand where does one stand.
Yes I have been in exactly the same situation.
Went all the way, they filed every possible paper they could file, but they did not succeed. Based on your description, I don't think that in your case it was actually filed yet (correct me if I'm wrong). In some cases they will just try to scary you, but if you don't break - they won't file. If they do - well, find a good lawyer (somebody already mentioned Grellas here).
Right now the first thing that you should do is go and talk to SEVERAL lawyers. Find the ones that have free initial consultation, spend 30 minutes with them, they will tell you what your options are. If there's a possibility for a counter suit - you should probably do that.
Also, read your employment agreement several times. In a lot of cases there's a statement that the defeated party will pay attorney's fees. In a lot of cases there is a statement that the company will pay all the fees except first $100-$500. And in a lot of cases the case must be filed with the arbitration, which is much cheaper and if you don't have money to pay for your lawyer - you might have a better chance there.